Saturday, June 6, 2009

Monetizing the 8K tax credit

As I reported last week, HUD published guide lines that will allow buyers using FHA loans to monetize the 8K tax credit.

But what does that mean? And how is HUD and lenders going to achieve the monetizing?

Kenneth Harney of The Washington Post wrote a great article today called "Closing Cash From Uncle Sam".
The article outlines the way that HUD is allowing buyers to utilize the credit immediately.

Although a lot of states already have non-profits set up to give the 8K advance detailed in the article, DC does not. I'll keep you posted as I discover more details about the process in DC.

Meanwhile, this is more encouraging news for the housing market. Have a great weekend and happy shopping!

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